Correlation Between Prabos Plus and Raiffeisen Bank

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Can any of the company-specific risk be diversified away by investing in both Prabos Plus and Raiffeisen Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Prabos Plus and Raiffeisen Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prabos Plus as and Raiffeisen Bank International, you can compare the effects of market volatilities on Prabos Plus and Raiffeisen Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Prabos Plus with a short position of Raiffeisen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prabos Plus and Raiffeisen Bank.

Diversification Opportunities for Prabos Plus and Raiffeisen Bank

-0.5
  Correlation Coefficient

Very good diversification

The 3 months correlation between Prabos and Raiffeisen is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Prabos Plus as and Raiffeisen Bank International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raiffeisen Bank Inte and Prabos Plus is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Prabos Plus as are associated (or correlated) with Raiffeisen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raiffeisen Bank Inte has no effect on the direction of Prabos Plus i.e., Prabos Plus and Raiffeisen Bank go up and down completely randomly.

Pair Corralation between Prabos Plus and Raiffeisen Bank

Assuming the 90 days trading horizon Prabos Plus as is expected to under-perform the Raiffeisen Bank. In addition to that, Prabos Plus is 1.08 times more volatile than Raiffeisen Bank International. It trades about -0.01 of its total potential returns per unit of risk. Raiffeisen Bank International is currently generating about 0.09 per unit of volatility. If you would invest  44,490  in Raiffeisen Bank International on September 19, 2024 and sell it today you would earn a total of  4,970  from holding Raiffeisen Bank International or generate 11.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Prabos Plus as  vs.  Raiffeisen Bank International

 Performance 
       Timeline  
Prabos Plus as 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Prabos Plus as has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Prabos Plus is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
Raiffeisen Bank Inte 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Raiffeisen Bank International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward indicators, Raiffeisen Bank may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Prabos Plus and Raiffeisen Bank Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Prabos Plus and Raiffeisen Bank

The main advantage of trading using opposite Prabos Plus and Raiffeisen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prabos Plus position performs unexpectedly, Raiffeisen Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Raiffeisen Bank will offset losses from the drop in Raiffeisen Bank's long position.
The idea behind Prabos Plus as and Raiffeisen Bank International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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